The cannabis company backed by members of the Tragically Hip band has agreed to a friendly takeover by Quebec-based HEXO Corp. in an all-share transaction valued at $263 million. The transaction is unanimously supported by the directors of both companies but requires approval by Newstrike shareholders. A joint statement by the companies say the deal would give HEXO the capacity to produce about 150,000 kilograms of cannabis annually and to realize $10 million of annual synergies. The proposed deal would result in Newstrike shareholders owning 14 per cent of the combined company, with the rest owned by HEXO shareholders. Newstrike shareholders are being offered 0.06332 of a HEXO common share in exchange for each common share held.

Source: thestar March 13, 2019 12:46 UTC